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OTHER FINANCIAL INFORMATION
 9 Months Ended
Sep. 26, 2020
Balance Sheet Related Disclosures [Abstract]  
OTHER FINANCIAL INFORMATION OTHER FINANCIAL INFORMATION
Inventories
The following table presents approximate percentage distribution between major classes of inventories:
September 26, 2020December 28, 2019
Raw Material and Work in Process49%48%
Finished Goods and Purchased Parts51%52%

Inventories are stated at cost, which is not in excess of market. Cost for approximately 54% of the Company's inventory at September 26, 2020, and 53% at December 28, 2019 was determined using the last-in, first-out ("LIFO") method.
Property, Plant, and Equipment
The following table presents property, plant, and equipment by major classification (dollars in millions):
Useful Life in YearsSeptember 26, 2020December 28, 2019
Land and Improvements$75.3 $80.3 
Buildings and Improvements
3 - 50
285.0 305.2 
Machinery and Equipment
3 - 15
969.6 988.2 
Property, Plant and Equipment1,329.9 1,373.7 
Less: Accumulated Depreciation(780.5)(768.7)
Net Property, Plant and Equipment$549.4 $605.0 

For the nine months ended September 26, 2020, the Company recognized $4.3 million of asset impairments related to the transfer of assets to held for sale. For the nine months ended September 28, 2019, the Company recognized $5.1 million of asset impairments related to the transfer of assets to held for sale.

Revenue Recognition

The Company recognizes revenue from the sale of electric motors, electrical motion controls, power generation and power transmission products. The Company recognizes revenue when control of the product passes to the customer or the service is provided and is recognized at an amount that reflects the consideration expected to be received in exchange for such goods or services.
Nature of Goods and Services
The Company sells products with multiple applications as well as customized products that have a single application such as those manufactured for its OEM customers. The Company reports in four operating segments: Commercial Systems, Industrial Systems, Climate Solutions and Power Transmission Solutions. See Note 6 for a description of the different segments.
Nature of Performance Obligations
The Company’s contracts with customers typically consist of purchase orders, invoices and master supply agreements. At contract inception, across all four segments, the Company assesses the goods and services promised in its sales arrangements with customers and identifies a performance obligation for each promise to transfer to the customer a good or service that is distinct. The Company’s primary performance obligations consist of product sales and customized system/solutions.
Product:
The nature of products varies from segment to segment but across all segments, individual products are not integrated and represent separate performance obligations.
Customized system/solutions:
The Company provides customized system/solutions which consist of multiple products engineered and designed to specific customer specification, combined or integrated into one combined solution for a specific customer application. The goods are transferred to the customer and revenue is typically recognized over time as the performance obligations are satisfied.
When Performance Obligations are Satisfied
For performance obligations related to substantially all of the Company's product sales, the Company determines that the customer obtains control upon shipment and recognizes revenue accordingly. Once a product has shipped, the customer is able to direct the use of, and obtain substantially all of the remaining benefits from the asset. The Company considers control to have transferred upon shipment because the Company has a present right to payment at that time, the customer has legal title to the asset, the Company has transferred physical possession of the asset, and the customer has significant risks and rewards of ownership of the asset.
For a limited number of contracts, the Company transfers control and recognizes revenue over time. The Company satisfies its performance obligations over time and the Company uses a cost-based input method to measure progress. In applying the cost-based method of revenue recognition, the Company uses actual costs incurred to date relative to the total estimated costs for the contract in conjunction with the customer's commitment to perform in determining the amount of revenue and cost to recognize. The Company has determined that the cost-based input method provides a faithful depiction of the transfer of goods to the customer.
Payment Terms
The arrangement with the customer states the final terms of the sale, including the description, quantity, and price of each product or service purchased. Payment terms vary by customer but typically range from due upon delivery to 120 days after delivery. For contracts recognized at a point in time, revenue and billing typically occur simultaneously. The Company generally has payment terms with its customers of one year or less and has elected the practical expedient applicable to such contracts not to consider the time value of money. For contracts recognized using the cost-based input method, revenue recognized in excess of customer billings and billings in excess of revenue recognized are reviewed to determine the net asset or net liability position and classified as such on the Condensed Consolidated Balance Sheet.
Returns, Refunds, and Warranties
The Company’s contracts do not explicitly offer a “general” right of return to its customers (e.g. customers ordered excess products and return unused items). Warranties are classified as either assurance type or service type warranties. A warranty is considered an assurance type warranty if it provides the customer with assurance that the product will function as intended. A warranty that goes above and beyond ensuring basic functionality is considered a service type warranty. The Company generally only offers limited warranties which are considered to be assurance type warranties and are not accounted for as separate performance obligations. Customers generally receive repair or replacement on products that do not function to specification. Estimated product warranties are provided for specific product groups and the Company accrues for estimated future warranty cost in the period in which the sale is recognized. The Company estimates the accrual requirements based on historical warranty loss experience and the cost is included in Cost of Sales.
Volume Rebates
In some cases, the nature of the Company’s contract may give rise to variable consideration including volume based sales incentives. If the customer achieves specific sales targets, they are entitled to rebates. The Company estimates the projected amount of the rebates that will be achieved and recognizes the estimated costs as a reduction to Net Sales as revenue is recognized.
Disaggregation of Revenue
The following tables presents the Company’s revenues disaggregated by geographical region (in millions):
Three Months Ended
September 26, 2020Commercial SystemsIndustrial SystemsClimate SolutionsPower Transmission SolutionsTotal
North America$156.9 $71.1 $210.7 $133.5 $572.2 
Asia35.4 35.7 9.7 7.4 88.2 
Europe8.0 6.4 7.7 20.1 42.2 
Rest-of-World18.2 25.6 5.9 5.9 55.6 
Total$218.5 $138.8 $234.0 $166.9 $758.2 
September 28, 2019Commercial SystemsIndustrial SystemsClimate SolutionsPower Transmission SolutionsTotal
North America$151.4 $78.8 $204.4 $146.3 $580.9 
Asia27.4 42.7 7.4 7.1 84.6 
Europe32.1 11.8 9.3 22.8 76.0 
Rest-of-World3.9 10.5 9.8 6.6 30.8 
Total$214.8 $143.8 $230.9 $182.8 $772.3 
Nine Months Ended
September 26, 2020Commercial SystemsIndustrial SystemsClimate SolutionsPower Transmission SolutionsTotal
North America$412.8 $213.2 $554.1 $417.6 $1,597.7 
Asia87.7 109.1 19.3 19.8 235.9 
Europe62.0 34.3 22.8 66.2 185.3 
Rest-of-World31.3 32.4 26.1 17.8 107.6 
Total$593.8 $389.0 $622.3 $521.4 $2,126.5 
September 28, 2019Commercial SystemsIndustrial SystemsClimate SolutionsPower Transmission SolutionsTotal
North America$503.5 $238.0 $671.1 $485.8 $1,898.4 
Asia82.4 126.8 28.6 21.7 259.5 
Europe101.8 39.2 31.5 70.0 242.5 
Rest-of-World15.6 33.4 30.9 19.5 99.4 
Total$703.3 $437.4 $762.1 $597.0 $2,499.8